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Content Delivery Networks 2010 - 2012 Product Image

Content Delivery Networks 2010 - 2012

  • Published: November 2010
  • Region: Global
  • 200 Pages
  • AccuStream iMedia Research

FEATURED COMPANIES

  • Abacast
  • Bitgravity
  • Cdnetworks
  • Edgecast
  • Internap
  • Limelight Networks
  • MORE

CDNs (Content Delivery Networks) are generating double-digit top line revenue growth in 2010, a convincing turnaround from the single-digit increase in 2009. CDNs are writing new contracts at a 26.7% annualized pace, and poised to produce $1.5 billion in 2010 revenue. This report shows 8.2% revenue growth in 2009 was accompanied by 25% account expansion, though not sufficient to overcome sharp declines in retail bandwidth pricing. The report's analysis indicates the U.S. market currently accounts for 55.6% of the $2.7 billion global CDN revenue total. Major providers like Akamai and Limelight Networks generate up to 30% of revenue through international contracts. Additional CDNs analyzed in the report include Abacast, BitGravity, CDNetworks, CacheFly, Edgecast, Internap, Level 3, Cotendo, Mirror Image and Highwinds, among others. Wholesale bandwidth costs continue to decline as a percentage of COGs, while retail prices are stabilizing. Moreover, considerably more bytes are being delivered to an expanding universe of fixed and mobile devices. Combined, those market trends are expected to improve both CDN gross margins and produce double-digit top line increases through 2012. MRR across READ MORE >

EXECUTIVE SUMMARY

CDN Market Performance Dynamics and Business Trends 2010 – 2012

CDN Market Revenue Analysis: 2003 – 2012

CDN Revenue and Account Growth Rates: 2006 - 2010

Entertainment and media forecast to account for 30.4% of CDN revenue in 2010,

comparable to 2009

Entertainment Media Revenue Share of CDN Market: 2006 - 2010

Media and entertainment contract value to exceed $461 million in 2010

Professional video content categories including advertising networks and download

media are highly penetrated by CDNs

SECTION ONE

Introduction and 2010-2012 Overview

CDN 2010 - 2011: Revenue, Cap Ex, R & D, Operational Performance Summary

Analysis

Terminology Definitions

CDN Market Performance Dynamics and Business Trends 2010 – 2012

CDN Market Revenue Analysis: 2003 – 2012

CDN Monthly Recurring Revenue Analysis: 2005 - 2010

CDN Revenues Forecast at $1.52 Billion in 2010, Up 18.5% Over 2009

CDN Market Revenue Analysis: 2003 - 2010

CDN Revenue Growth Rates Historically Accelerate Through the Year

Retail Contracts Forecast to Increase by 26.7 in 2010

CDN Annual Accounts: 2005 - 2010

CDN Revenue and Account Growth Rates: 2006 - 2010

CDN MRR is Forecast to Fall by 8% in 2010

CDN Monthly Recurring Revenue Analysis: 2005 – 2010

Entertainment and Media Forecast to Account For 30.4% of CDN Revenue in 2010,

Comparable to 2009

Entertainment Media Revenue Share of CDN Market: 2006 - 2010

Media and Entertainment Contract Value to Exceed $461 Million in 2010

Total Media and Entertainment CDN Contract Value: 2006 - 2010

Sever Deployments to Increase by 31% in 2010

CDN Media Server Deployment: 2005 - 2010

Cap Ex Investment Forecast to Rise by24.8% in 2009

CDN Cap Ex Investment: 2007 - 2010

Server Deployment Growth Rates Tracking More Closely with Account Growth

in 2010

Cap Ex Analysis: Server Deployments and Account Growth

U.S. Captures 55.6% of Global CDN Revenue in 2010

Commercial Market Value For Audio and Delivery Estimated at $672.2 Million

in 2010

Commercial Bandwidth Market Value: Audio/Video 2006 - 2010

COGS and Retail Contract Analysis Indicate CDN Gross Margins are Healthy and

Costs/Pricing in Equilibrium in 2010

Average Retail Bandwidth Costs, COGS Analysis: 2006 - 2010

Entertainment and Media Accounts Generated $461.6 Million in Retail and Wholesale

Market Value in 2010

Total Media and Entertainment CDN Contract Value: 2006 - 2010

Streaming/HTTP Content Category Share: Commercial Market Value 2006 – 2010

Retail Contract Pricing For Bandwidth Exhibited A Slower Rate of Decline in 2010

Compared to 2009

Retail Contract Pricing: 2006 - 2010

Pricing Declines for Retail Contracts are Less Steep Than Those Seen in the

Wholesale Business in 2010

Annual Pricing Comparison: Retail Versus Transit 2006 - 2010

SECTION TWO

CDN Entertainment and Media Market Performance Analytics 2010

Commercial Market Value of Media and Entertainment Estimated at $672.2 Million

in 2010

CDN Bandwidth Services Category Share: 2010 Year End Estimate

Professional Video Content Categories Including Advertising Networks and

Download Media are Highly Penetrated by CDNs

2010 Full Year Estimates: Bandwidth Services Analysis by Content Vertical

Online Music Listening Hours Per Month Average 697.2 Million in 2010 (Including

Individual Track Plays)

Professional Video Averaging 4.76 Billion Views Per Month in 2010, with an

Average of 500+ Kbps of Throughput

Online Video: Professional Entertainment and Media Bandwidth Services Analysis

and Market Size

UGC Views are Averaging 10.8 Billion Per Month in 2010

User Generated Video Pricing and Market Analysis: 95th Percentile Estimates

Pre Roll Advertising As A Media Type and Marketing Vehicle Has Expanded

Dramatically Over the Past Year; There is an Average of 2.99 Billion Pre Roll Ads

Delivered Per Month in 2010

Video Advertising: Pre Roll Avail Bandwidth Services Analysis and Market Size

In-Banner Video Impressions Averaging 15.8 Billion Delivered Per Month in 2010

In-Banner Video Advertising: Bandwidth Services Analysis and Market Size

Music Downloads Forecast at 5.3+ Billion Units in 2010; Movie and TV Show

Downloads at 193.2 Million

Download Bandwidth Services Analysis and Market Size

Podcast Downloads (Audio and Video) are Forecast at 8.4 Billion in 2010

Podcasting Bandwidth Services Analysis and Market Size

Transit Bandwidth Services Segment Analysis: 2010

Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile

Analysis)

Professional Video: Transit Bandwidth Services Market Value (95th Percentile

Analysis)

User Generated Video Transit Pricing and Market Analysis (95th Percentile

Analysis)

Video Advertising: Pre Roll Transit Bandwidth Services Market Size (95th

Percentile Analysis)

In-Banner Video Advertising: Transit Bandwidth Services Market Size (95th

Percentile Analysis)

Download Transit Bandwidth Services Market Size (95th Percentile Analysis)

Podcasting Transit Bandwidth Services Market Size (95th Percentile Analysis)

Commercial Market Value of Media and Entertainment Estimated at $628 Million

in 2009

CDN Bandwidth Services Category Share: 2009 Year End Estimate

CDN Bandwidth Services Category Share: 2008 Year End Estimate

CDN Bandwidth Services Category Share: 2007 Mid Range Estimate

CDN Bandwidth Services Category Share: 2006 Mid Range Estimate

SECTION THREE

CDN Revenue is Forecast at $1.5 Billion in 2010

CDN Market Revenue Analysis: 2003 - 2012

The Top Four CDNs Control 89.9% of Segment Revenue in 2010

CDN Revenue 2010 (Est.)

Akamai Powers 23.7% of Total CDN Accounts in 2010; Edgecast 11.7%

CDN Account Share: 2010

There are 15,393 Total CDN Accounts in 2010

CDN Annual Accounts: 2005 - 2010

Account Growth and Revenue Growth Inverted in 2009

CDN Revenue and Account Growth Rates: 2006 - 2010

MRR Averaged $8,108 in 2010, Down 8% From 2009

CDN Monthly Recurring Revenue Analysis: 2005 - 2010

CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 - 2012

Server Deployments Increased by 31% in 2010

CDN Media Server Deployment: 2005 - 2010

Account Growth and Server Investment are More Closely Aligned in 2010

CDN Cap Ex Investment: 2007 - 2010

Cap Ex Analysis: Server Deployments and Account Growth

SECTION FOUR

Pro Video Delivery Ranked by CDN Contract/Vendor

Professional Video: 2010 YTD

SECTION FIVE

UGC is A Highly Concentrated Content Segment, Predominately Self-Hosted, but CDNs are Making Inroads

Hosted UGC Sites and Networks

SECTION SIX

Online Music Radio Listening Increasingly Delivered by CDNs

Approximately 33% of Total Listening Hours are Delivered through CDN Contracts

Online Music Radio: 2010 YTD

SECTION SEVEN

Q&A

ABACAST

AKAMAI

BITGRAVITY

CACHEFLY

CDNETWORKS

COTENDO

EDGECAST

HIGHWINDS

INTERNAP

LEVEL 3

LIMELIGHT NETWORKS

MIRROR IMAGE

CDN SECTOR RETURNS TO DOUBLE-DIGIT GROWTH IN '10; REVENUE UP BY 18.5%, ACCOUNTS INCREASE 26.7%

CDNs (Content Delivery Networks) are generating double-digit top line revenue growth in 2010, a convincing turnaround from the single-digit increase in 2009.

CDNs are writing new contracts at a 26.7% annualized pace, and poised to produce $1.5 billion in 2010 revenue, according to a comprehensive industry report by AccuStream Research.

The report, CDN 2011, shows 8.2% revenue growth in 2009 was accompanied by 25% account expansion, though not sufficient to overcome sharp declines in retail bandwidth pricing.

The U.S. market currently accounts for 55.6% of the $2.7 billion global CDN revenue total. Major providers like Akamai and Limelight Networks generate up to 30% of revenue through international contracts.

Additional CDNs analyzed in the report include Abacast, BitGravity, CDNetworks, CacheFly, Edgecast, Internap, Level 3, Cotendo, Mirror Image and Highwinds, among others.

Wholesale bandwidth costs continue to decline as a percentage of COGs, while retail prices are stabilizing. Moreover, considerably more bytes are being delivered to an expanding universe of fixed and mobile devices.

Combined, those market trends are expected to improve both CDN gross margins and produce double-digit top line increases through 2012.
MRR across the sector is forecast to decline by 8% in 2010 (to $8,108), however, following a 13.6% drop in 2009. Bandwidth, co-location and power continue to make up the largest COGS components and each retail contract dollar.

Solutions diversification (including site acceleration, adaptive bit rate streaming--which increases viewing time, combined with less emphasis on bandwidth overage fees billed by CDNs--plus tighter integration with OVPs for publishing standardization, automation and monetization support) are expected to beneficially impact MRR.

The report's analytics and extensive Q & A's focus on transit and retail pricing, underlying market forces, billing models by content vertical (i.e. pro and UGC video), account type (including audio, video, dynamic site acceleration, advertising and download media), CAP EX (up 24.8% in ‘10), servers deployed, R & D, mobile initiatives, strategic imperatives, partnerships, and the impact of cloud computing.

CDN market penetration of each key content vertical is supported by AccuStream's extensive media consumption databases.

- Abacast

- Akamai

- Bitgravity

- Cachefly

- Cdnetworks

- Cotendo

- Edgecast

- Highwinds

- Internap

- Level 3

- Limelight Networks

- Mirror Image

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